INVESTOR PRESENTATION - SMARTCENTRES
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Investor Presentation
Based on Second Quarter 2017
September 2017
Notice to Reader
Readers are cautioned that certain terms used in this Investor Presentation (“Presentation”) such as Funds from
Operations ("FFO"), Adjusted Funds from Operations ("AFFO"), Adjusted Cashflow from Operations ("ACFO"),
"Gross Book Value", "Payout Ratio", "Interest Coverage", "Total Debt to Adjusted EBITDA" and any related per Unit
amounts used by management to measure, compare and explain the operating results and financial performance of
the Trust do not have any standardized meaning prescribed under IFRS and, therefore, should not be construed as
alternatives to net income or cash flow from operating activities calculated in accordance with IFRS. These terms
are defined in this Presentation and reconciled to the consolidated financial information of the Trust in the
Management’s Discussion and Analysis (“MD&A”) for the three and six months ended June 30, 2017. Such terms
do not have a standardized meaning prescribed by IFRS and may not be comparable to similarly titled measures
presented by other publicly traded entities.
Certain statements in this Presentation are "forward-looking statements" that reflect management's expectations
regarding the Trust's future growth, results of operations, performance and business prospects and opportunities.
More specifically, certain statements contained in this Presentation, including statements related to the Trust's
maintenance of productive capacity, estimated future development plans and costs, view of term mortgage renewals
including rates and upfinancing amounts, timing of future payments of obligations, intentions to secure additional
financing and potential financing sources, and vacancy and leasing assumptions, and statements that contain words
such as "could", "should", "can", "anticipate", "expect", "believe", "will", "may" and similar expressions and
statements relating to matters that are not historical facts, constitute "forward-looking statements". These forward-
looking statements are presented for the purpose of assisting the Trust's Unitholders and financial analysts in
understanding the Trust's operating environment, and may not be appropriate for other purposes. Such forward-
looking statements reflect management's current beliefs and are based on information currently available to
management. However, such forward-looking statements involve significant risks and uncertainties. A number of
factors could cause actual results to differ materially from the results discussed in the forward-looking statements.
Although the forward-looking statements contained in this Presentation are based on what management believes to
be reasonable assumptions, the Trust cannot assure investors that actual results will be consistent with these
forward-looking statements. The forward-looking statements contained herein are expressly qualified in their entirety
by this cautionary statement. These forward-looking statements are made as at the date of this Presentation and the
Trust assumes no obligation to update or revise them to reflect new events or circumstances unless otherwise
required by applicable securities legislation.
SMART REAL ESTATE INVESTMENT TRUST 2
Smart Real Estate Investment Trust (TSX:SRU.UN)
One of Canada’s premier REITs
$4.7 billion equity capitalization
(unit price of $30.24 as of August 25, 2017)
$8.8 billion total asset value
142 shopping centres, 1 office property and 1 mixed-use
property across Canada
SMART REAL ESTATE INVESTMENT TRUST 3
Track Record of Performance
Total Return to Unitholders
11.4% average annual return since IPO (as of August
25, 2017)
$1,200
$1,000
$894.86
$800
$600
$422.24
$400
$351.24
$200
$0
SmartREIT TSX Capped REIT TSX Composite
SMART REAL ESTATE INVESTMENT TRUST 4
Track Record of Performance
Growth in Rental Revenue Growth in FFO / Unit
7.4% CAGR since 2012 5.6% CAGR since 2012
Rental Revenue FFO
(in millions of $) ($ per unit)
727.8 2.23
670.3 2.10
607.6 1.95
573.0 1.79 1.85
546.1
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
* YTD and remainder of year forecasted
SMART REAL ESTATE INVESTMENT TRUST 5
Track Record of Performance
Growth in Total Assets
36.8% CAGR since 2002
Total Assets
(in millions of $)
8,739
8,505
7,070 7,107
6,480
5,956
4,194 4,237 4,374
3,894
3,584
2,564
1,015
109 229
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
SMART REAL ESTATE INVESTMENT TRUST 6
Key Investment Highlights
The quality of our shopping centre portfolio
Our exceptional list of growth initiatives
Our healthy balance sheet and financial flexibility
The quality and depth of our development team and JV
relationships
SMART REAL ESTATE INVESTMENT TRUST 7
SmartREIT’s Retail Shopping Centre Portfolio
31.9 million square feet of principally open format
shopping centre space
Average age: 13.6 years (youngest in the industry)
Lower capital expenditures
Coast to coast locations
84% are urban or near urban markets
82% by square feet in Ontario, Quebec and BC
Virtually 100% of sites contain both a food store and a
pharmacy, either in a Walmart store or independently
Strong value orientation
Results in high degree of stability:
Average occupancy of 99.0% since 2005
SMART REAL ESTATE INVESTMENT TRUST 8
SmartREIT’s Portfolio
144 Properties*
31.9 million square feet*
Alberta Manitoba
8 3
Saskatchewan Quebec
BC 4 22
13 Atlantic
Ontario 10
84
* Excludes 8 development lands totalling 0.9 million square feet upon completion and an additional
3.2 million square feet of development density associated with existing centres. Also excludes 12
properties and 2.2 million square feet to be acquired as part of the OneREIT transaction
SMART REAL ESTATE INVESTMENT TRUST 9
Market Conditions
Why is Canada different from the United States
Much lower square feet of retail per person (15 vs. 23)
traditionally drives higher rents per square foot
Power Centres and Big Box retail are only 20 years old in
Canada, so assets are still very relevant to consumers’
daily shop
Rate and stage of E-commerce penetration is much slower
in Canada due to small market size, cost of shipping, etc.
Canada has already rationalized its department store base
Canadian value orientation means all population segments
shop at Walmart, dollar stores and other value chains
Affordability of housing continues to drive urban sprawl
and growth of the suburbs where virtually all of our assets
are located
SMART REAL ESTATE INVESTMENT TRUST 10Stable Income Base
Average lease term of 6.0 years
Average remaining lease term of 7.3 years for Walmart, with multiple renewal options
of up to 80 years
Average remaining lease term excluding Walmart is 4.9 years
2017 average retention rate to date at 66% and lifts on renewals of 2.2%
Average “same property” NOI growth is 1.0% to 1.5% p.a.
Lease Maturity by Area
(in millions of square feet)
3.1 3.4 3.5 4.1 3.0
2.1 2.0
1.4 1.5
0.7 0.5
0.3
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Month- Vacant
to-month
Average roll of 2.4 million square feet annually (7.3% of total GLA per year)
SMART REAL ESTATE INVESTMENT TRUST 11Well Tenanted, High Quality Portfolio
The following table illustrates the top ten tenants for SmartREIT’s Property Portfolio as at
June 30, 2017, in terms of their percentage contribution to gross rental revenues of
SmartREIT’s Portfolio:
% of
Average DBRS
Number of Gross
Tenant Remaining Credit
Stores Rental
Lease Term Rating
Revenues
Walmart 95 26.3 7.3 AA
Canadian Tire, Mark's and FGL Sports 67 4.4 5.7 BBB (high)
Winners, HomeSense, Marshalls 49 4.0 5.4
Lowe’s, RONA 9 2.6 6.9 A (low)
Sobeys 17 2.4 6.0 BB (high)
Loblaws and Shoppers Drug Mart 20 2.3 6.9 BBB
Reitmans 98 2.3 3.1
Best Buy 23 1.9 3.1
Dollarama 46 1.6 4.4 BBB
Michaels 24 1.6 4.3
Total 448 49.4 6.4
SMART REAL ESTATE INVESTMENT TRUST 12Current Leasing Environment
Former Target space and other bankrupt space causing
overhang in certain markets
Sears store closure will also have some additional
limited impact in certain markets
Fashion segment still rationalizing, but we have limited
exposure
Value segment still growing – Dollar stores, Winners,
Marshalls, HomeSense
Other mid-size retailers also adding space – Indigo,
Michaels, Food stores, Pet stores
Fitness category still adding space or expanding existing
footprint
Bars, restaurants, etc., part of lifestyle experience
evolution
SMART REAL ESTATE INVESTMENT TRUST 13OneREIT Proposed Transaction Summary
12 Properties / $429 million
2.2 million square feet / 93% leased
Ontario (10) / BC (1) / Saskatchewan (1)
10 Food-anchored / inclusive of 6 Walmarts
NOI of $26 - $28 million (Year 1 to Year 2)
FFO / Unit growth near $0.04 - $0.05
Average lease term of 7.3 years
SmartREIT & Strathallen combined for $4.26 Unit Price
to OneREIT (15% premium)
Unitholder vote to be held on September 25, 2017
SMART REAL ESTATE INVESTMENT TRUST 14OneREIT Transaction – In Effect Two Portfolios
A. Stability
99.5% leased
Walmart Supercentre anchored
Very strong national tenants / covenants
Coupon clipper
B. Growth & Stability
90% leased
Redevelopment opportunity for part / all of each
property
100,000 square feet of future retail density
1.7 million square feet of future mixed-use
(residential, retirement, office, storage, etc.)
Business Units already in process of reviewing
opportunity, zoning, permissions, uses, etc.
SMART REAL ESTATE INVESTMENT TRUST 15Highlights of the 12 Property Portfolio
City
Property Province Acquired GLA Leased Major Tenants and Features
% (sf) %
Walmart, Costco,
Mississauga
Creekside Crossing 30% 122,402 98% LCBO, Beer Store, RBC, TD, CIBC (New
ON
dominant urban retail centre)
Chilliwack Safeway, Winners, Sport Chek (Strategic
Chilliwack Mall 100% 152,467 82%
BC location: redevelopment)
Loblaw Superstore (new 20 year lease),
Regina
Golden Mile Shopping Centre 100% 255,572 93% Dollarama, Liquor Store, GoodLife, Rexall
SK
(Newly redeveloped centre)
Giant Tiger, GoodLife,
Brampton
Kingspoint Shopping Centre 100% 202,236 98% Shoppers Drug Mart, (Urban, potential mixed-
ON
use residential)
Mississauga Government, Swiss Chalet, Remax
Burnhamthorpe City Centre 100% 199,434 84%
ON (Redevelopment potential near Square One)
Toronto No Frills (Loblaw), City of Toronto, Dollarama
Yorkgate Shopping Centre 100% 215,862 93%
ON (New subway redevelopment potential)
Walmart, Canadian Tire,
St. Catharines
Lincoln Value Centre 100% 376,041 82% Loblaw (Dominant three anchored centre,
ON
repositioning potential)
St. Catharines
Hartzel Plaza 100% 67,392 100% Food Basics, Provincial Government
ON
Orillia Walmart, Winners, Dollarama (WM only
Orillia Shopping Centre 100% 241,653 100%
ON discount mass retailer in market)
Simcoe Walmart, LCBO (WM only discount mass
Simcoe Shopping Centre 100% 129,876 100%
ON retailer in the market)
Fergus Walmart, LCBO (WM only discount mass
Fergus Shopping Centre 100% 109,652 100%
ON retailer in the market)
Rockland Walmart, Rona, LCBO (new Rona shadow and
Rockland Shopping Centre 100% 147,358 100%
ON WM only discount mass retailer in the market)
Total 2,219,945 93%
SMART REAL ESTATE INVESTMENT TRUST 16Key Investment Highlights – SmartREIT’s Key Growth Initiatives
1. Intensify and expand existing 31.9 million square feet of
retail properties
Retail
Seniors Housing
Residential – condominium, rental and single family
housing
Self Storage
2. Urban Development Properties
3. Toronto Premium Outlets expansion, future Montreal
Premium Outlets expansion and new outlet sites in other
locations
4. Select accretive acquisitions
5. Support Walmart Canada’s growth agenda
SMART REAL ESTATE INVESTMENT TRUST 17SmartREIT Retail Intensification
Multiple sites under investigation for intensification.
Currently estimated 50+ sites have potential
Majority of initial sites in the Greater Toronto Area
Collaborate with JV partners who bring expertise
Can be both new builds or retrofit in existing buildings
SMART REAL ESTATE INVESTMENT TRUST 18Major Mixed-Use Real Estate Initiatives
Estimated Costs ($M) Estimated Gain on Final Sale
GLA ('000sf) SRU NOI at 100% NOI at SRU Completion
Site Project Type / Units % Share 100% SRU Share ($M) Share ($M) Year Yield Profit % SRU Share Timing
a. KPMG (T#1) Office 360sf 50% $180.0 $90.0 $10.2 $5.1 2016 5.7% - - -
b. PWC (T#2) Office 105sf 50% $65.0 $32.5 $3.0 $1.5 2019 4.5%-5.5% - - -
c. Office (T#3) Office 600sf 50% $310.0 $155.0 $17.4 $8.7 2023 5.0%-6.0% - - -
(1)
1. VMC (Office Towers) d. Office (T#4) Office 300sf 50% $175.0 $87.5 $9.6 $4.8 2025 5.0%-6.0% - - -
(2)
2. Toronto Premium Outlets Phase II (JV) Retail 144sf 50% $119.0 $59.5 $10.9 $5.4 Nov 2018 9.0%-9.5% - - -
(2)
3. Montreal Premium Outlets Phase II (JV) Retail 140sf 50% $56.0 $28.0 $5.6 $2.7 2021-2022 9%-10% - - -
4. New Premium Outlets Premium (JV) Retail 260sf 50% $114.0 $57.0 $8.7 $4.4 2020 7.5%-8.0% - - -
(3)
5. Laval Centre Jadco (2 Bldgs) Apartments 300 Units 50% $75.0 $37.5 $4.3 $2.2 2019-2020 5.7% - - -
CentreCourt Condo #1 551 Units 25% $181 $45.25 N/A N/A 2020 N/A 25%-30% 25% 2020
CentreCourt Condo #2 559 Units 25% $189 $47.25 N/A N/A 2020 N/A 25%-30% 25% 2020
CentreCourt Condo #3 606 Units 25% $190 $47.5 N/A N/A 2021 N/A 20%-25% 25% 2021
(3)
6. VMC (Condos) Condo Condo #4 & 5 1,100 Units 25% $380 $95.0 N/A N/A 2023 N/A 20%-25% 25% 2023
(3)
7. Vaughan NW Fieldgate Townhomes 229 Units 50% $152.0 $76.0 N/A N/A 2019-2020 N/A 20%-25% 50% 2019-2020
8. Ottawa Laurentian JV Partner (2 Bldgs) Apartments 300 Units 25% $86.0 $21.5 $4.9 $1.23 2020-2021 5.5%-6.5% - - -
$4.8M net $2.4M net
Self Storage 500sf built new NOI new NOI
(4 to 5 new per year in $52M per $26M per commences commences
facilities each each of year in each year in each annually on annually on
9. Multiple Locations Self Storage (JV) year) years 1-5 50% of years 1-5 of years 1-5 stabilization stabilization 2019-2023 7.5%-8.5% - - -
Mixed-Use
(Office, Studio,
10. StudioCentre (Toronto) SRU-Penguin JV Hotel) 150sf 50% $53.0 $26.3 $3.4 $1.71 2019-2022 6.0%-7.0% - - -
Notes:
(1) KPMG and PWC towers are included in the future development pipeline as Developments (see “Future Earnouts and Developments”).
(2) The Phase II expansions for both the Toronto Premium Outlets and the Montreal Premium Outlets are included in the future development pipeline as Developments (see “Future Earnouts and Developments”).
(3) Estimated Incremental FFO Gain on Sale in 2017 related to Laval Centre, VMC (Condo's) and Vaughan NW parcels, collectively are in the range of 1-2% of annual FFO at SmartREIT's ownership share. Further land sale
gains are expected to occur in future years as sales of land into JV's continue.
In addition to the projects set out in the table above (with the exception of the projects listed in Notes 1 and 2), SmartREIT's pipeline also includes approximately 4.1 million sf of future developments
as set out in the table shown on the “Future Earnouts and Developments” section . Also in addition to the above, over the longer term, SmartREIT has a further mixed-use development pipeline
estimated at 4-4.5M sf in projects such as Ottawa South SmartCentre, Westside Mall (Toronto), Vaughan (400 & 7) SmartCentre and Richmond Hill SmartCentre.
SMART REAL ESTATE INVESTMENT TRUST 19SmartREIT’s Urban Development Properties
Major urban developments in Toronto, Montreal and
Ottawa
Linked to new transit infrastructure
Mixture of Office, Residential (condominium and rental)
and Retail
Potential of in excess of 10 million square feet of
development over time
Will involve experienced JV partners
SMART REAL ESTATE INVESTMENT TRUST 20Vaughan Metropolitan Centre (“VMC”)
A long term build (10 – 15 years)
A 50:50 JV between SmartREIT and Penguin
Investments. Mitchell Goldhar intimately involved in all
aspects of the project
Potential density of 16-17 million square feet of
residential, office and retail development for the whole
100-acre site
SmartREIT lands (approx. 25 acres) represent 4 million
to 5 million square feet of potential development
Transit infrastructure, including TTC subway, VIVA bus
and York regional bus, to open in late 2017
Exceptional opportunity to develop a new city centre for
one of Canada’s fastest growing communities
SMART REAL ESTATE INVESTMENT TRUST 21VMC – Aerial Aerial Overview SMART REAL ESTATE INVESTMENT TRUST 22
VMC – Aerial Transit Overview SMART REAL ESTATE INVESTMENT TRUST 23
VMC – Phases 1 & 2 of Office Development
First development completed – KPMG Tower complex
with 365,000 square feet of LEED Gold space, opened in
2016
16th Annual Real Estate Excellence (REX) Award for
Office Development of the Year for the GTA
Office tenants include KPMG, Green for Life, Miller
Thompson, Harley Davidson, BMO, FM Global
Second mixed-use tower under construction, with
YMCA, Library and community space for 100,000 SF
and PwC has taken another 80,000 square feet of office
space
Eight-acre urban park is a key component of the master
plan
SMART REAL ESTATE INVESTMENT TRUST 24VMC – KPMG Tower Lobby SMART REAL ESTATE INVESTMENT TRUST 25
VMC – Transit City Condos SMART REAL ESTATE INVESTMENT TRUST 26
VMC – PwC-YMCA Tower SMART REAL ESTATE INVESTMENT TRUST 27
SmartCentres VMC Central Park SMART REAL ESTATE INVESTMENT TRUST 28
VMC – Residential Development
First residential development is a JV with CentreCourt
Developments, an experienced GTA-based
condominium developer
Initial plan was for a 55 storey condominium tower with
over 500 suites, anchored by a BUCA-branded
restaurant and BAR BUCA, together with an associated
parking facility
First tower fully sold at higher than initially projected
pricing, so second and third towers launched early,
which also sold out at strong pricing
Additional condominium and rental towers expected to
be developed based on consumer demand
Sales centre has been built on-site to allow potential
tenants to see suite layouts, finishes, etc.
SMART REAL ESTATE INVESTMENT TRUST 29VMC – Major Construction Projects in Vicinity
(2)
(1)
(3)
(1) Liberty office and residential development at Weston Road and Hwy 7
(2) KPMG Tower at VMC
(3) Cortellucci residential development at Jane Street and Hwy 7
SMART REAL ESTATE INVESTMENT TRUST 30Vaughan NW – Residential Development
Existing Walmart anchored shopping centre at Major
Mackenzie Drive and Weston Road in Vaughan
JV with Fieldgate on 16-acre site
Up to 230 freehold townhomes to be built
Construction to commence in 2018 and possession to
occur in 2019 and 2020
Significant financial benefit for SmartREIT unitholders
SMART REAL ESTATE INVESTMENT TRUST 31Vaughan NW – Residential Development SMART REAL ESTATE INVESTMENT TRUST 32
Laval Centre Lands designated by City as “Centre-Ville”, due to highway and transit access 43 acre site anchored by a 160,000 square foot Walmart Supercentre Parcels of land under contract for seniors housing, hotel and office development of 400,000 square feet JV for 290,000 square feet of rental residential in 330 units with Jadco Remaining 15 acres to be developed SMART REAL ESTATE INVESTMENT TRUST 33
Laval Centre with Jadco SMART REAL ESTATE INVESTMENT TRUST 34
Westside Mall Toronto
Inner urban redevelopment site. Currently an
approximate 140,000 square foot shopping centre
New Light Rapit Transit (LRT) station as part of Eglinton
Cross Town system to open on site
New links to existing GO network will link new East:West
to existing North:South transit framework
Received council support for rezoning up to 2.5 million
square feet
Long-term project to add principally new residential
development, with select retail
SMART REAL ESTATE INVESTMENT TRUST 35Westside Mall Toronto SMART REAL ESTATE INVESTMENT TRUST 36
StudioCentre
StudioCentre is a brownfield
location next to Toronto’s
eastern waterfront. A former
industrial site, today it is an
underutilized film production
centre
SmartREIT and Penguin
Investments intend to revitalize
the centre, adding new film
production, office, and retail
opportunities
Rezoning has created the
opportunity to build up to 1.2
million square feet of office,
retail and film studios at the
centre
SMART REAL ESTATE INVESTMENT TRUST 37StudioCentre Architect’s rendering of potential new site layout SMART REAL ESTATE INVESTMENT TRUST 38
Self Storage
Identified business opportunity to build self storage
properties based on market demand with established JV
partner
Buildings on average 100,000 square feet to 130,000
square feet
Development yield expected to be 7.5% to 8.5%
Additional returns from sale of land into the JV
5 sites now identified in the GTA with more to follow
Additional parts of the country to be developed over time
SMART REAL ESTATE INVESTMENT TRUST 39Self Storage with SmartStop SMART REAL ESTATE INVESTMENT TRUST 40
Premium Outlets
Toronto Premium Outlets
JV with Simon Property Group
500,000 square feet when all phases are completed
Phase I opened August 1, 2013
Phase II construction – Underway with new parking
facility as part of expansion
Stabilized yield continues to be in the double digits
Montreal Premium Outlets
JV with Simon Property Group
Phase I – 350,000 square feet
Opened October 30, 2014
Additional 75 acres of potential retail development
adjacent to the site
Actively sourcing two other locations in Canada
SMART REAL ESTATE INVESTMENT TRUST 41Premium Outlets SMART REAL ESTATE INVESTMENT TRUST 42
Toronto Premium Outlets (“TPO”) – Expansion SMART REAL ESTATE INVESTMENT TRUST 43
TPO Expansion – Construction of Parking Deck SMART REAL ESTATE INVESTMENT TRUST 44
Key Investment Highlights – Our Balance Sheet Will Support
Extensive Asset Growth
Unencumbered pool at $2.9 billion = flexibility
Ready access to mortgage and unsecured debt capital
when needed = strong liquidity
Key ratios improving
Payout ratio at 77.3% in Q2 2017, leading to the
announced 3% distribution increase in October 2017,
with long term target remaining in the range of 77% to
82%
Renewing interest rates still lower than maturing rates
despite rate increases improves FFO
SMART REAL ESTATE INVESTMENT TRUST 45Debt Maturity / Leverage
Debt Maturity
(in millions of $)
4.6%
4.2% 4.3%
4.1%
3.8%
160 3.4% 3.6%
3.4% 3.4%
3.2%
0 0
2.7%
300
150 200
150 100
250 0
142 325 307 123 139 259 146 85 328 63 48
2017* 2018 2019 2020 2021 2022 2023 2024 2025 2026 Thereafter
Secured Debt Unsecured Debentures Average Int. Rate
Lower interest costs on refinancing available with 10 year unsecured rates around 3.9% and secured rates
below that
Interest Coverage: 3.1X Target: 2.5 - 2.75X
Debt to EBITDA: 8.4X Target: 7.25 - 7.5X
Debt to GBV: 51.5% Target: 50 - 60% long-term trend to continue to de-lever
Unencumbered pool: $2.9 billion (2.0X) Target: 1.5X unsecured coverage
Weighted Avg Interest Rate (Secured Debt): 3.76%
Weighted Avg Term to Maturity (Secured Debt): 4.8 yrs
DBRS rating of BBB with a Stable trend
SMART REAL ESTATE INVESTMENT TRUST 46Leverage Profile
Dec. 31 Dec. 31 Dec. 31 Jun. 30
2014 2015 2016 2017
Debt to Aggregate Assets 42.8% 44.7%(1) 44.3% 43.9%
Secured Debt to Aggregate Assets 24.7% 31.2%(2) 29.5% 27.6%
Unencumbered Assets $2.4B $2.5B $2.7B $2.9B
Debt to Adjusted EBITDA 7.4X 8.4X(1) 8.4X 8.4X
Interest Coverage 2.7X 3.0X 3.1X 3.1X
Liquidity: Cash Resources $324M $345M $355M $356M
Weighted Average Interest Rate(3) 5.03% 3.87% 3.79% 3.76%
Weighted Average Term to Maturity(3) 5.3 yrs 5.4 yrs 4.8 yrs 4.8 yrs
(1) Leverage increased during 2015 in support of the transformative SmartCentres Platform transaction
(2) Significant rate spread between unsecured and secured debt led management to increase secured debt financing during 2015
(3) Secured Debt
SMART REAL ESTATE INVESTMENT TRUST 47Conservative Capital Structure
Total Enterprise Value – $8.6 Billion
Secured Mortgage Financing
27.9% Amount - $2.4 billion
Weighted Avg Interest Rate – 3.76%
Weighted Avg Term to Maturity – 4.8 years
Unsecured Debentures Focused on:
15.2% Amount - $1.31 billion
Weighted Avg Interest Rate – 2.88% Lowering interest rates on renewals
Weighted Avg Term to Maturity – 6.0 years
Maintaining maximum flexibility
Equity
54.7% Units Outstanding – 156 million Reducing leverage over time
Share Price – $30.24 as at Aug. 25, 2017
Market Capitalization – $4.7 billion
Operating Lines / Outstanding LC’s
2.2% Operating Line – $149 million
Letters of Credit – $43 million
SMART REAL ESTATE INVESTMENT TRUST 48Stable Cash Flow
AFFO Payout Ratio
90.3% 88.6% 84.7% 81.1% 79.8% 77.3%
2012 2013 2014 2015 2016 Q2 2017
($ per unit)
FFO 1.79 1.85 1.95 2.10 2.23* 1.10**
AFFO 1.71 1.75 1.84 1.99 2.10* 1.05**
Distributions 1.55 1.55 1.56 1.61 1.66 0.85**
* includes $9.9 million settlement proceeds associated with the Target lease terminations net of other amounts
** six months ending June 30, 2017
Distribution fully funded from operating cashflow
Management expects the payout ratio to remain in the high 70% to low 80% range
Annual distribution increased in October 2016 to $1.70 from $1.65, representing an
increase of 3.0%, and further increased in October 2017 to $1.75, representing an
additional 2.9% increase
SMART REAL ESTATE INVESTMENT TRUST 49Key Investment Highlights – Quality of Development Capability
Can Be a Differentiator
Significant involvement from Mitchell Goldhar on all key
projects
Very experienced development team
Close to 200 shopping centre developments over last
20 years
Up to 50 million square feet built
Growing expertise in Mixed Use
All key resources in-house
Experienced and knowledgeable leasing operations and
support team
Key JV Partners
Walmart CentreCourt
Simon Property Group Jadco
Mitchell Goldhar SmartStop
SMART REAL ESTATE INVESTMENT TRUST 50Development, Design & Construction Teams
Huw Thomas
Chief Executive Officer
Peter Forde
President & Chief Operating Officer
18 Years
Mauro Pambianchi
Chief Development Officer
16 Years
EVP, Portfolio SVP, Portfolio SVP, Design & EVP, Portfolio VP, Land VP, Development
Leader Leader Construction Leader Development Western Portfolio
17 Years 15 Years 14 Years 19 Years 13 Years 14 Years
Ontario QC & Maritimes Ontario VMC BC, AB, SK, MB
9 Employees 9 Employees 8 Employees 7 Employees 10 Employees
Construction & Development Architecture
Tenant Design & Engineering 2 Employees
Estimation 5 Employees
30 Employees
Mitchell Goldhar also involved in
all key projects
SMART REAL ESTATE INVESTMENT TRUST 51Other Issues We Are Monitoring
In the coming years, retailers’ businesses will be affected
by:
E-commerce
Aging population
Urbanization and the move to more convenient
shopping
Changing ethnic mix of population
We will continue to monitor the impact of these issues
and will adjust our business model accordingly, always
remembering:
The quality of our sites
The value we provide our tenants
The strength and capabilities of our partners
SMART REAL ESTATE INVESTMENT TRUST 52E-commerce Response – Penguin Pick-Up Penguin Pick-Up located at Scarborough (1900 Eglinton) SmartCentre SMART REAL ESTATE INVESTMENT TRUST 53
E-commerce Responses
Penguin Pick-Up:
Initiative driven by Penguin Investments
Convenient locations for consumers to pick up
products ordered online
Drives traffic to shopping centres and supports
tenants
11 SmartREIT locations in place for the initiative at
year-end, along with 57 external sites in multiple
provinces, with significant increase to come in the
balance of 2017
Over 2,500 different retailers supported so far
Finalizing arrangements for a network of vehicle
charging stations on SmartCentre sites
Launching digital signage at select locations
SMART REAL ESTATE INVESTMENT TRUST 54The Best Offense Starts With a Strong Defense - SmartREIT
Best-in-Class Portfolio
Newest retail portfolio amongst all Canadian peers.
84% located in urban or near urban locations, with
strong national tenants as anchors
Strong Financial Position
Strong balance sheet and strong credit metrics.
Growing unencumbered pool provides increased
financial flexibility. Access to multiple sources of
capital
Growth Prospects increasing, particularly after
SmartCentres acquisition
Portfolio of growth opportunities from smaller local
intensification to Vaughan Metropolitan Centre,
Canada’s largest mixed use development
SMART REAL ESTATE INVESTMENT TRUST 55Appendix SMART REAL ESTATE INVESTMENT TRUST 56
Strategic Relationships
Walmart
Mitchell Goldhar
Simon Property Group
CentreCourt Developments
Jadco Corporation
SmartStop Asset Management
SMART REAL ESTATE INVESTMENT TRUST 57Strategic Relationship - Walmart Canada
Walmart Canada Number of Walmart Stores
attributes
Value pricing and
fresh food generates
huge traffic 227 301
Other
Shadow
Dominant retailer SmartREIT
13 14
Has benefited from the 90 95
closure of Target
Supercentres Total Walmart
(330)* Stores (410)*
76% of Canadians live
within 10 km of a Walmart * Company source as at August 25, 2017
SMART REAL ESTATE INVESTMENT TRUST 58Strategic Relationship - Mitchell Goldhar
JV Partner
Vaughan Metropolitan Centre
StudioCentre Site
Salmon Arm
Consultant on mixed use projects
Board Chair, Trustee and Investment Committee
member
Ad hoc advice and council on shopping centre portfolio
Multiple on-going business relationships as service
provider
SMART REAL ESTATE INVESTMENT TRUST 59Strategic Relationship - Simon Property Group
Largest public real estate company in the U.S.
Engaged primarily in retail real estate properties
including regional malls, Premium Outlets and The
Mills®
Exceptional relationships with the world’s largest
retailers provides strong tenant base for premium
sites
Canada is part of a continuing global expansion
SMART REAL ESTATE INVESTMENT TRUST 60Strategic Relationship – CentreCourt Developments
Leader in the development of high-rise condominiums in
downtown Toronto
Since 2011, CentreCourt has completed and/or is in
various stages of developing over 3,000 condominium
units in six major high-rise projects with a development
value of over $1.2 billion
SMART REAL ESTATE INVESTMENT TRUST 61Strategic Relationship – Jadco Corporation
Well reputed family-owned business
Has gained a strong foothold in the real estate sector in
the Greater Montreal Area
Strengths lie in its commitment to excellence in building
exceptional living and mixed-used environments
Diversified portfolio comprised of luxury residential,
upscale rental and mixed-used projects such as Paton1,
Quintessence and Équinoxe
SMART REAL ESTATE INVESTMENT TRUST 62Strategic Relationship – SmartStop Asset Management
Diversified real estate company focused on self storage
assets, along with student and senior housing
Portfolio currently includes 65,000 self storage units, 7.5
million rentable square feet and $1 billion of real estate
assets under management
Asset manager for 103 self storage facilities located
throughout the United States and Toronto, Canada
SMART REAL ESTATE INVESTMENT TRUST 63You can also read
